Author Question: A current ratio of 3.50 means a. There is 3.50 of current assets available to pay every dollar of ... (Read 101 times)

xroflmao · **on:** Jul 6, 2018

A current ratio of 3.50 means
a. There is 3.50 of current assets available to pay every dollar of current debt.
b. There is 3.50 available to pay for all debt.
c. There is 3.50 of current liabilities that need to be paid immediately.
d. Nothing meaningful can be determined from this information.

Question 2

Hannah County has a total fund balance in the General Fund as of the end of the year of 1,565,000 . Assume the following:
The budget officer decided to set aside 405,000 for new road maintenance.

The county's governing board had previously given her this authority.
Unspent restricted drug enforcement grant proceeds of 75,000
The county's governing board passed a resolution to use 500,000 for construction of a fleet maintenance facility.
In the year-end financial statements, Hannah County would report unassigned fund balance and assigned fund balance, respectively, in the General Fund as
A. 1,085,000 unassigned fund balance; 405,000 assigned fund balance.
B. 660,000 unassigned fund balance; 905,000 assigned fund balance.
C. 585,000 unassigned fund balance; 405,000 assigned fund balance.
D. 495,000 unassigned fund balance; 480,000 assigned fund balance.